Construction Today - October 2016 - 57

IN THIS SECTION
* Liquidated damages clauses;
* Notice and change order provisions; and
* Dispute resolution provisions.

Continue to Evaluate Your Position
After you review the contract, evaluate the validity and completeness of the facts in the default notice. This will help you formulate a
response to the notice of default.
If you have the option or right to cure the alleged default, ask yourself the following questions:
"Do I have the capability, financially or otherwise, to cure?"
"Do I want to cure?"
"Can I afford not to cure and personally subject myself to indemnify the surety?"
"Do I have the financial resources to pay for potentially time-consuming litigation or arbitration?"
Your answers to these questions will help you determine the most
appropriate response to the default notice.

Rucon Inc. p.64

Rucon owner Dennis
Russo's approach to construction management
has earned him work.

Company Profiles
58
62
64
67

70

Respond to the Notice of Default
Provide a written response to the notice of default. Failure to respond
to the notice could justify a termination for default. The response
should first state the date that you received the notice and explain
why your response is timely. The response should then present all
defenses, such as excusable delay, excuse of nonperformance due
to defective specifications, waiver of contractual formalities and
substantial completion, as well as any defects in the notice of default.
Some contracts require that the notice identify the specific contractual provisions underlying the default.
Failing to present all of your defenses to the alleged default could
lead to a termination for default and litigation. Often, notwithstanding your response, the contract may be terminated.
However, by responding to the notice of default, you will create
a contemporaneous record of your position before termination and
have written evidence to support a potential claim for wrongful
termination. Your response should further demonstrate there is no
default or provide adequate assurances you will cure the alleged
default. If you are not contesting the default, explain with specificity how you have resolved or are in the process of resolving the
issues. Finally, your response should contain a complete reservation
of rights.

Notify the Surety
If you are a principal on a performance or payment bond for the
project, give your surety notice of the construction default notice.
If you allow the surety to first hear about a problem from the other
side, it may be more difficult for the surety to view your position in

72
74
76
78

Barton Malow - Notre Dame
University Campus Crossroads
Lease Crutcher Lewis - Erb
Memorial Union
Rucon Inc.
TN Ward - Henry M. Rowan
College of
Engineering expansion
The Weitz Company LLC -
Anna and John J. Sie
International Relations Complex
Monarc Construction Inc.
Portzen Construction Inc.
Shook Touchstone LLC - Liberty
Center School District New K-12
Barton Malow - University of
Maryland, Baltimore County
Event Center

a favorable light. Also send a copy of your
response to the construction default notice to
the surety.
The answer to the question "how should
we respond to a construction default notice?"
requires a thorough analysis of the key facts,
the terms of any written contracts executed
by the parties, and the law applicable to the
dispute. When you receive a construction default notice, obtain immediate legal advice,
carefully review your options, and, perhaps,
most importantly, respond to the notice in
writing in a timely manner.
Jeffrey S. Wertman is a partner in the Dispute Resolution team at Berger Singerman, concentrating his practice on construction litigation. He may be reached at
(954) 712-5137 or jwertman@bergersingerman.com.

57

OCTOBER 2016 CONSTRUCTION-TODAY.COM


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Table of Contents for the Digital Edition of Construction Today - October 2016

Contents
Construction Today - October 2016 - Cover1
Construction Today - October 2016 - Cover2
Construction Today - October 2016 - 1
Construction Today - October 2016 - Contents
Construction Today - October 2016 - 3
Construction Today - October 2016 - 4
Construction Today - October 2016 - 5
Construction Today - October 2016 - 6
Construction Today - October 2016 - 7
Construction Today - October 2016 - 8
Construction Today - October 2016 - 9
Construction Today - October 2016 - 10
Construction Today - October 2016 - 11
Construction Today - October 2016 - 12
Construction Today - October 2016 - 13
Construction Today - October 2016 - 14
Construction Today - October 2016 - 15
Construction Today - October 2016 - 16
Construction Today - October 2016 - 17
Construction Today - October 2016 - 18
Construction Today - October 2016 - 19
Construction Today - October 2016 - 20
Construction Today - October 2016 - 21
Construction Today - October 2016 - 22
Construction Today - October 2016 - 23
Construction Today - October 2016 - 24
Construction Today - October 2016 - 25
Construction Today - October 2016 - 26
Construction Today - October 2016 - 27
Construction Today - October 2016 - 28
Construction Today - October 2016 - 29
Construction Today - October 2016 - 30
Construction Today - October 2016 - 31
Construction Today - October 2016 - 32
Construction Today - October 2016 - 33
Construction Today - October 2016 - 34
Construction Today - October 2016 - 35
Construction Today - October 2016 - 36
Construction Today - October 2016 - 37
Construction Today - October 2016 - 38
Construction Today - October 2016 - 39
Construction Today - October 2016 - 40
Construction Today - October 2016 - 41
Construction Today - October 2016 - 42
Construction Today - October 2016 - 43
Construction Today - October 2016 - 44
Construction Today - October 2016 - 45
Construction Today - October 2016 - 46
Construction Today - October 2016 - 47
Construction Today - October 2016 - 48
Construction Today - October 2016 - 49
Construction Today - October 2016 - 50
Construction Today - October 2016 - 51
Construction Today - October 2016 - 52
Construction Today - October 2016 - 53
Construction Today - October 2016 - 54
Construction Today - October 2016 - 55
Construction Today - October 2016 - 56
Construction Today - October 2016 - 57
Construction Today - October 2016 - 58
Construction Today - October 2016 - 59
Construction Today - October 2016 - 60
Construction Today - October 2016 - 61
Construction Today - October 2016 - 62
Construction Today - October 2016 - 63
Construction Today - October 2016 - 64
Construction Today - October 2016 - 65
Construction Today - October 2016 - 66
Construction Today - October 2016 - 67
Construction Today - October 2016 - 68
Construction Today - October 2016 - 69
Construction Today - October 2016 - 70
Construction Today - October 2016 - 71
Construction Today - October 2016 - 72
Construction Today - October 2016 - 73
Construction Today - October 2016 - 74
Construction Today - October 2016 - 75
Construction Today - October 2016 - 76
Construction Today - October 2016 - 77
Construction Today - October 2016 - 78
Construction Today - October 2016 - 79
Construction Today - October 2016 - 80
Construction Today - October 2016 - 81
Construction Today - October 2016 - 82
Construction Today - October 2016 - 83
Construction Today - October 2016 - 84
Construction Today - October 2016 - 85
Construction Today - October 2016 - 86
Construction Today - October 2016 - 87
Construction Today - October 2016 - 88
Construction Today - October 2016 - 89
Construction Today - October 2016 - 90
Construction Today - October 2016 - 91
Construction Today - October 2016 - 92
Construction Today - October 2016 - 93
Construction Today - October 2016 - 94
Construction Today - October 2016 - 95
Construction Today - October 2016 - 96
Construction Today - October 2016 - 97
Construction Today - October 2016 - 98
Construction Today - October 2016 - 99
Construction Today - October 2016 - 100
Construction Today - October 2016 - 101
Construction Today - October 2016 - 102
Construction Today - October 2016 - 103
Construction Today - October 2016 - 104
Construction Today - October 2016 - 105
Construction Today - October 2016 - 106
Construction Today - October 2016 - 107
Construction Today - October 2016 - 108
Construction Today - October 2016 - 109
Construction Today - October 2016 - 110
Construction Today - October 2016 - 111
Construction Today - October 2016 - 112
Construction Today - October 2016 - 113
Construction Today - October 2016 - 114
Construction Today - October 2016 - 115
Construction Today - October 2016 - 116
Construction Today - October 2016 - 117
Construction Today - October 2016 - 118
Construction Today - October 2016 - 119
Construction Today - October 2016 - 120
Construction Today - October 2016 - 121
Construction Today - October 2016 - 122
Construction Today - October 2016 - 123
Construction Today - October 2016 - 124
Construction Today - October 2016 - 125
Construction Today - October 2016 - 126
Construction Today - October 2016 - 127
Construction Today - October 2016 - 128
Construction Today - October 2016 - Cover3
Construction Today - October 2016 - Cover4
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